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WoolCorp Condensed Income Statement For the Year Ended December 31, 2018 Raw Wool Wool Yarn Rug Yarn Total Company Sales $210,000 $155.000 $187.000 $552.000 Costs

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WoolCorp Condensed Income Statement For the Year Ended December 31, 2018 Raw Wool Wool Yarn Rug Yarn Total Company Sales $210,000 $155.000 $187.000 $552.000 Costs of goods solde Variable costs $(48,000) $28,600) ${37,190) $(103.790) Fixed costs (32.000) 12.400) (24,790) (69.190) Total cost of goods sold $(80,000) $(31,000) $(61,980) ${172,980) Gross proft $130,000 $124,000 $125,020 $379,020 Operating expenses ${5.000) $(7.750) ${53,120) 5(65.870) Forced expenses (89,000) (27.000) (106,200) (272,200) Total operating expenses 5194.000) 5(84.750) $(159.320) 5338.070) Operating income (los) $36.000 $39.250 5(34.300) 340.950 Complete the following table in the data in the preceding income tant to compare the effects of dropping the rug yamte of products. If required, useminution to indicatelow Differential Analysis Continue Rug Yarn (Alternative 1) or Discontinue Rug Yam (Alternative 2) December 31, 2018 Continutug Yarn (Alternative 1) Discontinue Rug Yarn (Alternative 2) Differential Effects (Altern. Rev 167,000 1. X Co Variable 50.300x 100X Fund 111000 111,000 vacable penet Dod 13.00 On My W My on

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